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DB Corp-IPO Note-111209 Visit us at money.umakant.info

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DB Corp-IPO Note-111209 Visit us at money.umakant.info Powered By Docstoc
					DB Corp
IPO Note

SUBSCRIBE
Issue Open: December 11, 2009 Issue Close: December 15, 2009

Rising Sun
Rationale for our Subscribe view
Multi-State Leadership: DB Corp (DBCL) is a leading print media company, publishing 7 newspapers and 48 editions in 3 languages (Hindi, Gujarati and English) across 11 states in India. Dainik Bhaskar, its flagship publication, is the market leader in terms of readership in Madhya Pradesh, Chattisgarh, Chandigarh and Haryana. DBCL's combined average daily readership of, Dainik Bhaskar (2nd largest Hindi daily), Divya Bhaskar (largest circulated Gujarati daily) and Saurashtra Samachar is 15.5mn readers, making it the most widely read newspaper group in India. Strong presence in faster growing, Non-metro markets: Despite having a higher number of registered newspapers, higher readership and a better proportionately distributed readership (urban + rural), the Regional dailies command a lower share of the print advertising pie. However, as tier-II and tier-III cities grow in terms of per capita income and consumer spends, advertisers are gradually opening their eyes to the cost advantage that Regional dailies offer, vis-à-vis English dailies. DBCL, with a substantial presence in the non-metro cities of North, Central and Western India, is well positioned to benefit from this emerging advertising opportunity. Strong Infrastructure and proven execution ability: DBCL has strong infrastructure, with one of the largest newspaper production and distribution platforms in India. Backed by its proven execution skills and focus on consumer research (Rajasthan and Gujarat launch), DBCL has successfully ventured out of its traditional markets, expanding into new states and languages, and has established its leadership by displacing strong incumbents. DBCL's combined readership base has grown from 3.2mn readers in 1995 to 15.5mn readers in 2009.

Issue Details Face Value: Rs10 Present Eq Paid up Capital: Rs168.8cr Post Issue Eq Paid up Capital: Rs181.5cr Issue size (shares): 1.82cr# Issue size (amount): Rs336cr - 385cr** Issue Price: Price Band of Rs185 - 212 Promoters holding pre-issue: 92.9% Promoters holding post-issue: 86.4%
**at Lower and Upper price band # Includes offer for Sale of 0.5cr shares by Cliffrose Invst (Warburg Pincus affiliate)

Book Building

Outlook and Valuation
QIBs# Non-Institutional Retail At least 60% At least 10% At least 30%

DBCL posted consolidated revenues of Rs949cr and Rs517cr, with Earnings of Rs47.7cr and Rs95.5cr, in FY2009 and 1HFY2010, respectively, driven by a strong Margin expansion (14.3% in FY2009 and 32.9% in 1HFY2010). At the upper price band of Rs212, DBCL is trading at 18.1x FY2011E EPS of Rs11.7 which we believe is reasonable, given its higher Earnings growth, strong position in the faster growing print markets and proven execution skills. We have valued the stock at 20x FY2011E EPS (peers trading between ~18-22x P/E) and have arrived at a fair value of Rs234, indicating a 10% upside to the upper price band. Hence, we recommend a Subscribe view to the issue. Key risks to our recommendation include: 1) Slowdown in GDP growth, 2) volatility in newsprint prices, 3) Rupee depreciation, and 4) Increase in competitive intensity.

Post Issue Shareholding Pattern Promoters Group Cliffrose MF/Banks/Indian FIs/FIIs/ Public & Others 10.0% 86.4% 3.6%

Exhibit 1: Objects of Issue Anand Shah
Tel: 022 - 4040 3800 Ext: 334
E-mail: anand.shah@angeltrade.com

Particulars Setting up new publishing units Upgrading of existing plants and machinery Sales and Marketing Working capital loan repayment

Amount (Rs cr) 60.0 30.5 50.1 20.0 110.0 * 270.6

Chitrangda Kapur
Tel: 022 - 4040 3800 Ext: 323
E-mail: chitrangdar.kapur@angeltrade.com

Pre-payment of Term loans General corporate purpose Total
Source: Company RHP, Angel Research

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Company Background
DBCL is a leading print media company, with its flagship brand, Dainik Bhaskar enjoying an average daily readership (AIR) of 11.7mn (2nd largest Hindi daily). It publishes 7 newspapers including Dainik Bhaskar, Divya Bhaskar, Saurashtra Samachar, Business Bhaskar, DB Gold, DB Star, and DNA (Gujarat and Rajasthan, on a franchisee basis), publishing 48 editions across three languages (Hindi, Gujarati and English) and 11 states in India. DBCL also publishes 5 periodicals, namely, Aha Zindagi, a monthly magazine published in Hindi and Gujarati, Bal Bhaskar, a Hindi magazine for children (supplement to Dainik Bhaskar in four states), Young Bhaskar, a children's magazine in English (distributed throughout India) and Lakshya, a career magazine in Hindi.

Exhibit 2: DB Corp - Key Newspaper Editions
Newspaper Newspaper Category Hindi News Paper States 9 Editions 27

Gujarati Newspaper

2

8

Hindi Business Newspaper
Source:Company, Angel Research

5

7

Moreover, the company operates 17 FM radio channels under the brand name MY FM, through SMEL, a subsidiary of DBCL with 56.8% equity interest, and internet and short messaging service (SMS) portals through its subsidiary IMCL.

Exhibit 3: DB Corp Business Model
DB Corp

Print

Radio (SMEL)

Internet (IMCL)

Newspaper

Periodicals

Dainik Bhaskar Divya Bhaskar Saurashtra Samachar Business Bhaskar DB Gold DB Star DNA Aha Zindagi Bal Bhaskar Young Bhaskar Lakshya 94.3 MY FM 17 Radio Stations www.bhaskar.com divyabhaskar.co.in indiainfo.com 545567 (SMS)

Source: Company RHP, Angel Research

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Issue Details
DBCL is tapping the IPO market with a public issue of 1.82cr shares, including an offer for the sale of 54.5lakh shares by Cliffrose Investment (an affiliate of Warburg Pincus) and a fresh issue of 1.27cr shares to the public. The offer for sale and issue of new shares would comprise 3% and 7% of the post-issue capital, respectively. Thus, the company intends to raise between Rs235cr-Rs270cr (excluding money raised via offer for sale) at a price band of Rs185-212 per share. The company plans to use the IPO proceeds for expanding its presence in new markets and for the repayment of debts.

Exhibit 4: Shareholding Pattern (Pre and Post Issue)
Pre-Issue Particulars Promoters Ramesh Chandra Agarwal Sudhir Agarwal Promoter Group Total Promoter Holding Cliffrose Invst* Others Total Public Total Share Capital 32,009,062 18,005,206 106,716,992 156,731,260 12,056,190 2,155 168,789,605 168,789,605 19.0 10.7 63.2 92.9 7.1 0.0 100.0 100.0 32,009,062 18,005,206 106,716,992 156,731,260 6,606,190 2,155 163,339,605 18,175,000 181,514,605 17.6 9.9 58.8 86.3 3.6 0.0 90.0 10.0 100.0 No. of shares % Post-Issue No. of shares %

Source: Company RHP, Angel Research; * Note: An affiliate private equity firm of Warburg Pincus

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Rationale for our Recommendation
Multi-State Leadership
DB Corp (DBCL) is a leading print media company, publishing 7 newspapers and 48 editions in 3 languages (Hindi, Gujarati and English) across 11 states in India. Dainik Bhaskar, its flagship publication, is the market leader in terms of readership in Madhya Pradesh, Chattisgarh, Chandigarh and Haryana, by significant margins. Moreover, Divya Bhaskar, its Gujarati daily, is the largest circulated newspaper in Gujarat since its launch.

Exhibit 5: Dainik Bhaskar Readership v/s Competition in core markets ('000)
3,000 2,514 2,500

2,000 1,500 1,021 1,000 687 517 500 199 MP Chattisgarh Dainik Bhaskar Haryana Nearest Competitor Chandigarh 84

1,335 920

Source: IRS 2009 R1, Company RHP, Angel Research

DBCL's combined average daily readership of Dainik Bhaskar (2nd largest Hindi daily), Divya Bhaskar (largest circulated Gujarati daily) and Saurashtra Samachar is 15.5mn readers, making it the most widely read newspaper group in India. Over the last three readership surveys, Dainik Bhaskar has managed to reduce its gap with the No.1 Hindi daily Dainik Jagran, from 56% in 2007 to 37% in 2009.

Exhibit 6: Dainik Bhaskar reducing readership gap vs largest competitor ('000)
17,114 16,000 14,000 12,000 10,000 8,000 30 6,000 4,000 2,000 2007 Dainik Bhaskar (LHS) 2008 Dainik Jagran (LHS) 2009 Diff (RHS, %) 10 20 10,964 11,458 11,739 40 50 16,384 16,072 60

Source: IRS, Company RHP, Angel Research

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Strong presence in faster growing, Non-metro markets
According to KPMG, India is the second-largest print market in the world, with a readership base of over 250mn readers. However, it is highly fragmented, with over 60,000 newspapers printed in 22 languages. Despite having a higher number of registered newspapers, higher readership and a better proportionately distributed readership (urban + rural), the Regional dailies command a lower share of the print advertising pie. Nonetheless, as Tier-II and Tier-III cities grow in terms of per capita income and consumer spends, advertisers are gradually opening their eyes to the cost advantage that the Regional dailies, offer vis-à-vis English dailies. Higher readership of regional dailies: Hindi language newspapers comprise 44.6%, while English language newspapers comprise 7.4% of the total registered dailies. Of the total readership of the top 10 daily newspapers in India, English newspapers receive only 11% of the total readership. Huge untapped potential: There is significant scope for growth in the circulation and readership of Hindi newspapers, as is evident from the fact that out of the 359mn people in India who can read but do not currently read any publication, 68% can read Hindi. Moreover, 20mn of these literate non-readers belong to the upscale SEC A and B segments (higher socio-economic brackets). Tier-II and Tier-III towns dominated by regional dailies: In Tier-II and Tier-III towns, the key growth areas are dominated by regional dailies, with a reach of 60% and 30%, respectively, among the SEC A and B population, vis-à-vis the 30% and 10% reach of the English dailies, respectively. Moreover, the SEC A and SEC B population is also growing faster in Tier-II and Tier-III towns.

Exhibit 7: Faster Population growth in Non-Metros
CAGR 06-09 SEC A Metro Tier II & III Towns Sec B Metro Tier II & III Towns
Source: IRS 2009 R1, Company RHP, Angel Research

2.2% 3.5%

2.5% 3.2%

Stronger growth in consumption of Tier-II and Tier-III towns: With rising per capita incomes and literacy rates, various consumption categories are registering higher growth rates in Tier-II and Tier-III towns, vis-à-vis Metros.

Exhibit 8: Higher consumption growth in Non-Metros
Growth (2008 v/s 2009) Consumer Durables Ownership IT & Comm. Product Ownership Automobiles Ownership FMCG Product Purchases
Source: IRS, Company RHP, Angel Research

Metros 7% 13% 5% 7%

Tier II 9% 16% 4% 10%

Tier III 11% 19% 10% 5%

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According to company data, 24% of the urban population of India resides in Bhaskar Markets (excluding Delhi & Mumbai) and 25% of India's consumption happens in Bhaskar Markets. Hence, DBCL with a substantial and dominant presence in the non-metro cities of North, Central and Western India, is well positioned to benefit from this emerging advertising opportunity.

Strong Infrastructure and proven execution ability
DB Corp is one of the fastest growing major newspaper groups in India. The company has clocked a 384% growth in readership, from 3.2mn readers in 1995 to 15.5mn readers in 2009.

Exhibit 9: Proven track record
1995 State 1 Editions 5 Language 1 Readership 3.2mn
Source: Company RHP, Angel Research

2009 States 11 Editions 48 Languages 3 Readership 15.5mn

We believe the company has achieved this feat on the back of its aggressive marketing strategy to break into new geographical regions, and a strong production and distribution network. As on 30 September, 2009, the company had 31 production facilities, spread across 31 cities, with a total installed capacity of around 1.94mn copies per hour. It also managed and operated 3,447 distributors, 22 sales offices and approximately 515 bureau offices.

Innovative entry strategies, backed by strong consumer research
Backed by its proven execution skills and focus on consumer research (Rajasthan and Gujarat launch), DBCL has successfully ventured out of its traditional markets, expanding into new states and languages, and has established its leadership by displacing strong incumbents. DBCL has been able to identify product gaps in various markets, and tailor successful products and editorial contents to fill these gaps.

Exhibit 10: Successful launches backed by innovative strategies
Edition Jaipur Chandigarh/Haryana Ahmedabad Amritsar/Jalandhar
Source: Company RHP, Angel Research

Date of Launch December 1996 May/June 2000 June 2003 2006

Comment No.1 from the day of Launch No.1 from the day of Launch No.1 from the day of Launch No.1 from the day of Launch

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The company has also been able to garner critical-sized advance orders in most markets prior to the launch, mainly on account of customer involvement generated through its surveys. For instance, when DBCL entered into Gujarat, the first edition of Divya Bhaskar in Ahmedabad was launched within 189 days of it being conceptualised. It surveyed 0.8mn households or approximately 80% of the city's total population before the launch and generated a circulation of 0.45mn copies on the day of the launch. The launch of the Ahmedabad edition has been used as a case study by the IIMs. On similar lines, the launch of Dainik Bhaskar in Jaipur in 1996 has been equally credible. In Jaipur, DBCL played on a pricing strategy and sold Dainik Bhaskar at a 33% discount to the market leader Rajasthan Patrika, while as a percent, DBCL offered 50% of the cover price as commission, which was lower than the competition. However, an incremental Rs5 for each six-month subscription earned by the vendors made up for the commission differential. More recently, the launch of Dainik Bhaskar, Punjab edition, in 2006, saw the company obtain approximately 161,000 annual subscriptions (out of a total circulation of approximately 201,000 for the newspaper) through direct contact with consumers.

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Financial Outlook
During FY2009-11E, we expect DBCL to post a CAGR of 12.5% in consolidated revenues primarily backed by a 14.6% growth in advertising revenues, on account of improved traction in new edition launches under Dainik Bhaskar, Business Bhaskar and DNA, an up-tick in advertising volumes (as segments like Auto, BFSI and Real estate recover) and rate hikes. On the Radio front, we estimate that SMEL (Radio subsidiary) recorded revenues of ~Rs30cr (Rs15cr) in FY2009, and have modeled in Rs36cr and Rs45cr revenue for FY2010E and FY2011E, respectively (included in advertising revenues). Moreover, our model does not capture the upside potential due to: 1) Cross-selling of media properties and scaling up of the same (likely particularly for Radio), 2) higher-than-estimated rate hikes, due to the economic recovery (likely), and 3) entry into newer markets (likely from funding through the IPO)

Exhibit 11: Advertising revenues to drive growth
Y/E March (Rs cr) Advertising Revenue Circulation Revenue Revenue from Event Mgmt Total Sales YoY Growth % Advertising Revenue Circulation Revenue Revenue from Event Mgmt Total Sales % of Total Advertising Revenue Circulation Revenue Revenue from Event Mgmt
Source: Company, Angel Research

FY2007 488.2 174.1 2.9 665.3 38.5 (0.3) 26.2 73.4 26.2 0.4

FY2008 649.0 195.9 5.7 850.6 32.9 12.5 94.7 27.9 76.3 23.0 0.7

FY2009 725.6 215.9 7.6 949.0 11.8 10.2 32.4 11.6 76.5 22.7 0.8

FY2010E 823.5 227.0 9.0 1,059.5 13.5 5.1 19.0 11.6 77.7 21.4 0.8

FY2011E 953.1 237.2 11.5 1,201.8 15.7 4.5 27.8 13.4 79.3 19.7 1.0

On the operating front, we have modeled in a 17% expansion to 31.3% (14.3%) during FY2010E (expect Margins to sustain in FY2011E), driving a robust 65.7% CAGR during FY2009-11E. The key drivers for Margin expansion include - 1) a sharp fall in newsprint prices (have fallen from a peak of US $950 to US $500), 2) rupee appreciation, 3) lower losses in the Radio business (nearing break-even), 4) break-even in recently launched, loss-making editions in the next two years, and 5) cost efficiencies.

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Sharp fall in newsprint prices - Key driver for Margin expansion
We estimate lower newsprint prices to contribute significantly to Margin expansion in FY2010E and have modeled in a 9% jump in FY2011E in newsprint prices. We estimate raw material as a % of sales to decline significantly from 42.9% in FY2009 to 31.4% in FY2011E, aided by lower newsprint prices, rupee appreciation, lower pagination, a higher domestic newsprint mix (currently at 79:21) and efficient sourcing.

Exhibit 12: Lower newsprint prices to enhance Margins
FY2007 Newsprint Consumed (tons) Total Newsprint Cost (Rs cr) Absolute Change (Rs cr) Newsprint costs as % of Sales Blended Cost (Rs/ton) Exchange Rate (Rs/US$) Imptd Newsprint Cost (US$/ton)
Source: Company, Angel Research

FY2008 127,784 336.5 9.4 39.6 26,336 42.1 706

FY2009 126,254 407.5 70.9 42.9 32,272 46.1 770

FY2010E 128,330 339.8 (67.7) 32.1 26,478 47.0 632

FY2011E 133,713 376.9 37.1 31.4 28,188 46.5 687

114,692 327.1 53.1 49.2 28,522 45.0 727

In terms of absolute Earnings, we estimate DBCL to register a strong 139.1% CAGR during the period FY2009-11E, driven by significant Margin expansion (due to lower newsprint prices and cost-cutting) and lower interest costs (repayment of debt). However, in terms of EPS, we expect Earnings to grow at a 110.9% CAGR during the period (post equity dilution of 10%) on account of the IPO.

Exhibit 13: Strong Earnings growth of 139% CAGR
250 212 200 182 25 35 30

(Rs cr)

150

20 15 76 48 48 10 5

100

50

FY2007 FY2008 FY2009 FY2010E OPM (RHS,%) FY2011E

-

Net Profit (LHS)

Source: Company, Angel Research

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IPO Funding to strengthen Balance Sheet
We estimate significant improvement to accrue to DBCL's Balance Sheet from funds raised via the IPO, as we have modeled in a debt reduction of Rs220cr during FY2009-11E, from Rs563cr to Rs343cr. This will lower the debt-equity ratio from the current 2.2x to 0.4x in FY2011E. Moreover, despite the equity dilution, we expect return ratios to improve significantly during the period, owing to a significant Margin expansion.

Exhibit 14: Debt/Equity to reduce substantially to 0.4x
2.5 23.9 2.0 24.4 25.2 25.0 20.0 1.5 12.7 1.0 10.0 0.5 5.0 0.0 FY2007 FY2008 FY2009 FY2010E RoE (RHS, %) FY2011E 12.2 15.0 30.0

-

Debt/Equity - (LHS, x)

Source: Company, Angel Research

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Valuation
At the upper price band of Rs212, DBCL is trading at 18.1x FY2011E EPS of Rs11.7, which we believe is reasonable, given: 1) its higher Earnings growth (110.9% CAGR during FY2009-11E), 2) strong position in the faster growing print markets (only player to exhibit dominant leadership in multiple states), and 3) proven execution skills (innovative launch strategies, including Gujarat, Rajasthan and Punjab).

Exhibit 15: Key Financials (Consolidated)
Y/E March (Rs cr) Net Sales % chg Net Profit % chg OPM (%) EPS (Rs) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) FY2008 851 27.9 75.9 58.1 20.1 4.5 47.2 16.3 34.5 23.9 5.5 25.1 FY2009 949 11.6 47.7 (37.1) 14.3 2.8 75.0 13.9 18.5 12.2 5.3 27.9 FY2010E 1,059 11.6 181.7 280.9 31.3 10.0 21.2 5.5 26.0 24.4 4.1 13.6 FY2011E 1,202 13.4 212.2 16.8 30.9 11.7 18.1 4.3 23.6 25.2 3.5 12.0

Source: Company, Angel Research; Note: Based on upper price band of Rs212

We have valued DBCL on the basis of a P/E multiple relative to its peers - Jagran Prakashan (JPL), HT Media (HTML) and Deccan Chronicle (DCHL). We have valued the stock at 20x FY2011E EPS (peers trading between ~18-22x P/E) and have arrived at a fair value of Rs234, indicating a 10% upside to the upper price band. Hence, we recommend a Subscribe view to the issue.

Exhibit 16: IPO valued attractively relative to its peer group
Company DBCL JPL HTML DCHL CMP Mkt Cap (Rs) 212 123 145 156 (Rs cr) 3,848 3,689 3,385 3,812 P/E (x) FY10E 21.2 20.6 33.9 14.0 FY11E 18.1 18.1 22.3 12.6 EV/EBITDA 13.6 13.0 16.1 8.3 12.0 11.5 12.5 7.5 RoCE (%) 24.4 31.3 10.2 19.1 25.2 34.4 13.1 18.7 CAGR (FY09-11) Sales 15.1 10.0 12.7 PAT 49.3 45.8 12.5 110.9 FY10E FY11E FY10E FY11E

Source: Company, Angel Research

Key risks to our recommendation include: 1) a Slowdown in GDP growth, 2) volatility in newsprint prices, 3) Rupee depreciation, and 4) Increase in competitive intensity.

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Exhibit 17: Consolidated P&L
Y/E March (Rs cr) Advertising Revenue Circulation Revenue Revenue from Event Mgmt Net Sales % chg Other Income Total Income Raw Material Cost Event Exp Staff Costs SG&A Exp Operating Exp Total Expenditure EBIDTA (% of Net Sales) Depreciation& Amortisation Interest PBT (% of Net Sales) Tax (% of PBT) Extraordinary Inc/ (Exp) Minority Interest (Loss)/Inc Reported PAT % chg (% of Net Sales)
Source: Company, Angel Research

FY2006 352.6 174.7 527.3 5.3 532.6 274.1 34.4 59.4 85.7 453.6 73.7 14.0 8.5 20.1 50.5 9.6 15.8 31.2 34.7 6.6

FY2007 488.2 174.1 2.9 665.3 26.2 9.1 674.4 327.1 2.1 54.1 102.5 95.0 580.8 84.5 12.7 11.9 20.6 61.1 9.2 13.5 22.2 (0.5) 48.0 38.2 7.2

FY2008 649.0 195.9 5.7 850.6 27.9 12.1 862.7 336.4 4.2 93.6 124.9 120.6 679.8 170.9 20.1 22.0 28.1 132.8 15.6 63.0 47.5 (6.1) 75.9 58.1 8.9

FY2009 725.6 215.9 7.6 949.0 11.6 12.0 961.0 407.5 5.8 133.1 121.7 145.6 813.7 135.3 14.3 29.0 40.2 78.2 8.2 42.3 54.1 (11.8) 47.7 (37.1) 5.0

1HFY2010 400.3 112.7 4.3 517.2 7.1 524.4 164.5 3.1 62.1 52.4 64.8 346.9 170.3 32.9 16.8 13.5 147.3 28.5 56.3 38.2 (4.6) 95.5 18.5

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Exhibit 18: Consolidated Balance Sheet
Y/E March (Rs cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Minority Interest Deffered Tax Liability (net) Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Goodwill Net Block Capital Work-in-Progress Investments Current Assets Inventories Sundry Debtors Cash and Bank Loans and Advances Current Liabilities & Prov Current liabilities Provisions Net Current Assets Misc Exp Total Assets
Source: Company, Angel Research

FY2006 2.1 109.3 111.5 384.0 0.1 24.7 520.2 166.9 31.1 51.2 187.0 17.2 0.1 367.3 56.0 114.7 38.2 158.4 53.5 36.5 17.0 313.8 2.1 520.2

FY2007 2.1 164.4 166.5 377.7 0.2 27.6 572.0 233.7 42.1 53.0 244.5 31.9 0.0 405.0 63.4 146.8 19.9 174.9 110.5 100.5 10.0 294.6 1.1 572.0

FY2008 168.8 50.9 219.7 343.6 24.2 34.6 622.1 347.0 59.4 50.9 338.5 23.8 6.8 421.2 67.1 175.5 80.8 97.8 171.5 137.2 34.2 249.7 3.3 622.1

FY2009 168.8 88.9 257.7 563.1 12.4 39.3 872.4 412.7 81.3 44.9 376.3 270.8 23.8 398.8 71.1 177.4 45.2 105.2 218.9 181.7 37.2 179.9 21.7 872.4

1HFY2010 168.8 184.4 353.2 484.9 7.8 45.0 890.9 532.0 94.8 41.8 479.0 178.8 29.3 440.4 75.8 208.0 54.7 101.8 258.7 215.0 43.7 181.8 22.1 890.9

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Fund Management & Investment Advisory P. Phani Sekhar Siddarth Bhamre Devang Mehta Research Team Hitesh Agrawal Sarabjit Kour Nangra Vaibhav Agrawal Vaishali Jajoo Shailesh Kanani Anand Shah Deepak Pareek Puneet Bambha Sushant Dalmia Rupesh Sankhe Param Desai Sageraj Bariya Viraj Nadkarni Paresh Jain Amit Rane Jai Sharda Amit Vora V Srinivasan Aniruddha Mate Shreya Gaunekar Mihir Salot Chitrangda Kapur Vibha Salvi Jaya Agrawal Amit Bagaria Sandeep Wagle Ajit Joshi Brijesh Ail Vaishnavi Jagtap Milan Sanghvi Mileen Vasudeo Krunal Dayma Sanket Padhye Pramod Rathod Poonam Jangid Commodities Research Team Amar Singh Samson P Anuj Gupta Girish Patki Abhishek Chauhan Commodities Research Team (Fundamentals) Badruddin Reena Walia Nair Vedika Narvekar Nalini Rao Bharathi Shetty Dharmil Adhyaru Bharat Patil Dilip Patel ( 022 - 3952 4568) Fund Manager - (PMS) Head - Derivatives and Investment Advisory AVP - Investment Advisory ( 022 - 3952 4568) Head - Research VP-Research, Pharmaceutical VP-Research, Banking Automobile Infrastructure, Real Estate FMCG , Media Oil & Gas Capital Goods, Engineering Pharmaceutical Cement, Power Real Estate, Logistics, Shipping Fertiliser, Mid-cap Retail, Hotels, Mid-cap Metals & Mining Banking Mid-cap Research Associate (Oil & Gas) Research Associate (Cement, Power) Research Associate (Infra, Real Estate) Research Associate (Automobile) Research Associate (Logistics, Shipping) Research Associate (FMCG, Media) Research Associate (IT, Telecom) Jr. Derivative Analyst PMS Chief Technical Analyst AVP Technical Advisory Services Manager - Technical Advisory Services Sr. Technical Analyst Sr. Technical Analyst Technical Analyst Technical Analyst AVP Mutual Fund Research Associate (MF) Research Associate (MF) Research Head (Commodities) Sr. Technical Analyst Sr. Technical Analyst Sr. Technical Analyst Technical Analyst Sr. Research Analyst (Agri) Sr. Research Analyst ( Base Metals, Energy, Currencies) Research Analyst ( Agri) Research Analyst (Agri) Research Editor Assistant Research Editor Production Production

Media
phani.sekhar@angeltrade.com siddarth.bhamre@angeltrade.com devang.mehta@angeltrade.com hitesh.agrawal@angeltrade.com sarabjit@angeltrade.com vaibhav.agrawal@angeltrade.com vaishali.jajoo@angeltrade.com shailesh.kanani@angeltrade.com anand.shah@angeltrade.com deepak.pareek@angeltrade.com puneet.bambha@angeltrade.com sushant.dalmia@angeltrade.com rupeshd.sankhe@angeltrade.com paramv.desai@angeltrade.com sageraj.bariya@angeltrade.com virajm.nadkarni@angeltrade.com pareshn.jain@angeltrade.com amitn.rane@angeltrade.com jai.sharda@angeltrade.com amit.vora@angeltrade.com v.srinivasan@angeltrade.com aniruddha.mate@angeltrade.com shreyap.gaunekar@angeltrade.com mihirr.salot@angeltrade.com chitrangdar.kapur@angeltrade.com vibhas.salvi@angeltrade.com Jaya.agarwal@angeltrade.com amit.bagaria@angeltrade.com sandeep@angeltrade.com ajit.joshi@angeltrade.com brijesh@angeltrade.com vaishnavi.jagtap@angeltrade.com milan.sanghvi@angeltrade.com vasudeo.kamalakant@angeltrade.com krunal.dayma@angeltrade.com sanket.padhye@angeltrade.com pramod.rathod@angeltrade.com poonam.jangid@angeltrade.com amar.singh@angeltrade.com samsonp@angeltrade.com anuj.gupta@angeltrade.com girish.patki@angeltrade.com abhishek .chauhan@angeltrade.com badruddin@angeltrade.com reena.walia@angeltrade.com vedika.narvekar @angeltrade.com nalini.rao@angeltrade.com bharathi.shetty@angeltrade.com dharmil.adhyaru@angeltrade.com bharat.patil@angeltrade.com dilipm.patel@angeltrade.com

Research & Investment Advisory: Acme Plaza, 3rd Floor ‘A’ wing, M.V. Road, Opp Sangam Cinema, Andheri (E), Mumbai - 400 059 Disclaimer This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions. Opinion expressed is our current opinion as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and are for general guidance only. While every effort is made to ensure the accuracy and completeness of information contained, the company takes no guarantee and assumes no liability for any errors or omissions of the information. No one can use the information as the basis for any claim, demand or cause of action. Recipients of this material should rely on their own investigations and take their own professional advice. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions - futures, options and other derivatives as well as non-investment grade securities - involve substantial risks and are not suitable for all investors. Reports based on technical analysis centers on studying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals. We do not undertake to advise you as to any change of our views expressed in this document. While we would endeavor to update the information herein on a reasonable basis, Angel Broking, its subsidiaries and associated companies, their directors and employees are under no obligation to update or keep the information current. Also there may be regulatory, compliance, or other reasons that may prevent Angel Broking and affiliates from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Angel Broking Limited and affiliates, including the analyst who has issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companies mentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to company/ies mentioned herein or inconsistent with any recommendation and related information and opinions. Angel Broking Limited and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past.

Ratings (Returns) :

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

December 11, 2009 January 30, 2008

For Private Circulation Only - Sebi Registration No : INB 010996539

14

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Corporate & Marketing Office NRI Helpdesk Investment Advisory Helpdesk Commodities PMS Feedback Regional Offices:
Ahmedabad - Tel: (079) 3941 3940 Bengaluru - Tel: (080) 3941 3940 Chennai - Tel: (044) 3941 3940 Cochin - Tel: (0484) 3941 394 Coimbatore - Tel: (0422) 3941 394 Hyderabad - Tel: (040) 3941 3940 Indore - Tel: (0731) 3941 394 Jaipur - Tel: (0141) 3941 394 Kanpur - Tel: (0512) 3941 394 Kolkata - Tel: (033) 3941 3940 Lucknow - Tel: (0522) 3941 394 Ludhiana - Tel: (0161) 3941 394 Mumbai (Goregoan) Tel: (022) 2879 0411-15 Mumbai (Powai) - Tel: (022)3952 6500 Nagpur - Tel: (0712) 3941 394 Nashik - Tel: (0253) 3011 500 / 1 / 11 New Delhi - Tel: (011) 3941 3940 Pune - Tel: (020) 3941 3940 Rajkot - Tel :(0281) 3941 394 Surat - Tel: (0261) 3941 394 Visakhapatnam - Tel : (0891) 3941 394

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612, Acme Plaza, M.V. Road, Opp Sangam Cinema, Andheri (E), Mumbai - 400 059 e-mail : nri@angeltrade.com e-mail : advisory@angeltrade.com e-mail : commodities@angeltrade.com e-mail : pmshelpdesk@angeltrade.com e-mail : feedback@angeltrade.com

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Branch Offices:
Andheri (Lokhandwala) - Tel: (022) 2639 2626 Andheri (W) - Tel: (022) 2635 2345 / 6668 0021 Bandra (W) - Tel: (022) 2655 5560 / 70 Bandra (W) - Tel: (022) 6643 2694 - 99 Borivali (W) - Tel: (022) 3952 4787 Borivali (Punjabi Lane) - Tel: (022) 3951 5700 Chembur (Swastik) - Tel: (022) 6703 0210 / 11 /12 Chembur - (Basant) - Tel:(022) 022) 6156 1111 / 01 Fort - Tel: (022) 3958 1887 Ghatkopar (E) - Tel: (022) 3955 8400/2510 1525 Kalbadevi - Tel: (022) 2243 5599 / 2242 5599 Kandivali (W) - Tel: (022) 2867 3800/2867 7032 Kandivali - Tel: (022) 4245 1300 Mahim - Tel: (022) 2444 6425 / 2444 9031 Malad (E) - Tel: (022) 2880 4440 Malad (Natraj Market) - Tel:(022) 28803453 / 24 Masjid Bander - Tel: (022) 2345 5130 /1 / 8 / 42 /28 Mulund (W) - Tel: (022) 2562 2282 Nerul - Tel: (022) 2771 9012 - 17 Powai (E) - Tel: (022) 3952 5887 Sion - Tel: (022) 3952 7891 Thane (W) - Tel: (022) 2539 0786 / 0650 / 1 Vashi - Tel: (022) 2765 4749 / 2251 Vile Parle (W) - Tel: (022) 2610 2894 / 95 Wadala - Tel: (022) 2414 0607 / 08 Agra - Tel: (0562) 4037200 Ahmeda. (Bapu Nagar) - Tel : (079) 3091 6900 - 02 Ahmedabad (C. G. Road) - Tel: (079) 4021 4023 Ahmeda. (Gurukul) - Tel: (079) 3011 0800 / 01 Ahmedabad (Kalupur) - Tel: (079) 3041 4000 / 01 Ahmedabad (Maninagar) - Tel: (079) 3981 7430 / 1 Ahmedabad (Odhav) Tel: (079) 2289 2869/98989 95031 Ahmeda. (Ramdevnagar) - Tel : (079) 4024 3842 / 43 Ahmedabad (Sabarmati) - Tel : (079) 3091 6100 / 01 Ahmedabad (Satellite) - Tel: (079) 4000 1000 Ahmedabad (Shahibaug) -Tel: (079)3091 6800 / 01 Ahmedabad (C. 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S. Rd) - Tel: (033) 3982 5050 Kolkata (P. A. Shah Rd) - Tel: (033) 3001 5100 Kota - Tel : (0744) 3941 394 Madurai Tel: (0452) 3941 394 Mangalore - Tel: (0824) 3982 140 Mansarovar - Tel:(0141) 3057 700/99836 74600 Meerut - Tel:(0121) 4015 400 Mehsana - Tel: (02762) 645 291 / 92 Mysore - Tel: (0821) 4004 200 - 30 Nadiad - Tel : (0268) - 2527 230 / 34 Nagaur - Tel: (01582) 244 648 Nashik - (K C Complex) Tel: (0253) 3941 394 New Delhi (Bhikaji Cama) - Tel: (011) 41659711 New Delhi (Lawrence Rd.) - Tel: (011) 3262 8699 / 8799 New Delhi (Pitampura) - Tel: (011) 4751 8100 New Delhi (Nehru Place) - Tel: (011) 3982 0900 New Delhi (Preet Vihar) - Tel: (011) 4310 6400 Noida - Tel : (0120) 4639 900 / 1 / 9 Palanpur - Tel: (02742) 308 060 - 63 Patan - Tel: (02766) 222 306 Porbandar - Tel : (0286) 3941 394 Porbandar (Kuber Life Style) - Mob.-98242 53737 Pune - (Pentagon) Tel : (020) 3093 4400 / 3052 3217 Pune (Aundh) - Tel: (020) 4104 1900 Pune (Camp) - Tel: (020) 3092 1800 Pune - (kalyani Nagar) Tel: (020) 6620 6591 / 6620 6595 Pune (Kothrud) Tel: (020) 4104 5400 Rajamundhry - Tel: (0883) 3941 394 Rajkot (Ardella) Tel.: (0281) 2926 568 Rajkot (University Rd.) - Tel: (0281) 2331 418 Rajkot - (Bhakti Nagar) Tel: (0281) 2361 935 Rajkot - (Indira circle) Tel : 99258 84848 Rajkot (Orbit Plaza) - Tel: (0281) 3983 485 Rajkot (Pedak Rd) - Tel: (0281) 3985 100 Rajkot (Ring Road)- Mobile: 99245 99393 Rajkot (Star Chambers) - Tel : (0281)3981 200 Rajkot - (Star Chambers) - Tel : (0281) 2225 401-3 Rajkot - PCG - Tel: (0281) 2490 847 Salem - Tel: (0427) 3941 394 Secunderabad - Tel : (040) 3093 2600 Surat (Mahidharpura) - Tel: (0261) 3092 900 Surat - (Parle Point) - Tel : (0261) 3091 400 Surat (Ring Road) - Tel : (0261) 3071 600 Surendranagar - Tel : (02752) 223305 Tirupur - Tel : (0421) 4302 800 Udaipur - Tel : (0294) 3941 394 Valsad - Tel : (02632) 645 344 / 45 Vapi - Tel: (0260) 3941 394 Varachha - (0261) 3091 500 Varanasi - Tel: (0542) 2221 129, 3058 066 Vijayawada - Tel :(0866) 3984 600 Warangal - Tel: (0870) 3982 200

Central Support & Registered Office:G-1, Akruti Trade Centre, Road No. 7, MIDC Marol, Andheri (E), Mumbai - 400 093 Tel : 2835 8800 / 3083 7700

December 11, 2009 January 30, 2008

For Private Circulation Only - Sebi Registration No : INB 010996539

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